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HomeMy WebLinkAboutContract 58421-A1CSC No. 58421-A1 FIRST AMENDMENT TO CITY SECRETARY CONTRACT NO. 58421. A MANAGEMENT AND IMPROVEMENT SERVICES AGREEMENT Fort Worth Public Improvement District No. 7 (Heritage) This FIRST AMENDMENT TO CITY SECRETARY CONTRACT NUMBER 58421 ("First Amendment") is made and entered into by and between the CITY OF FORT WORTH (the "City"), a home -rule municipal corporation organized under the laws of the State of Texas, acting by and through its duly authorized Assistant City Manager, and FIRSTSERVICE RESIDENTIAL TEXAS PID, LLC, a Texas limited liability company ("Contractor") acting by and through its duly authorized representative. WHEREAS, the City and Contractor are parties to a Management and Improvement Services Agreement for Fort Worth Public Improvement District No. 7, the same being City Secretary Contract Number 58421 ("Agreement"); WHEREAS, Contractor identified a need to reallocate certain funds between budgeted line items; WHEREAS, on April 25, 2023, the City Council adopted an ordinance approving a revised Fiscal Year 2022-2023 budget and five-year service plan, taking into account the budgetary adjustments; WHEREAS, the parties wish to amend the Agreement to incorporate the revised budget and five- year service plan; and NOW, THEREFORE, for and in consideration of the mutual covenants, promises, and agreements contained herein, the City and Contractor do hereby covenant and agree to amend the Agreement as follows: 1. Exhibit A to the Agreement concerning the Budget and Service Plan for the District is replaced with, and superseded by, a new Exhibit A that is attached to this First Amendment, which is incorporated into the Agreement for all purposes. 2. All terms of this First Amendment that are capitalized but not defined have the meanings assigned to them in the Agreement. 3. All terms and conditions of the Agreement that are not expressly amended pursuant to this First Amendment will remain in full force and effect. IN WITNESS WHEREOF, the undersigned have caused this First Amendment to be executed in Fort Worth, Tarrant County, Texas. CITY OF FORT WORTH: By: William Johnson (Ju 12, 2023 14:50 CDT) William M. Johnson Assistant City Manager Date: J u n 12, 2023 First Amendment to CSC 58421 FIRSTSERVICE RESIDENTIAL TEXAS PID, LLC a Texas limited liability company kath4een Waal By: Kathleen Ward (Jun 8, 2023 15:56 CDT) Kathleen Ward President Date: J u n 8, 2023 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX 1 of3 Approval Recommended: ,Pe6a�.t'�'tu�xm Robert Stums Economic Development Director ,ogovvRpgU �4oF FORr�aa ATTEST: PPP*oo Qoo*�d By: V � OaQ� nEXoSapb Jannette Goodall City Secretary APPROVED AS TO FORM AND LEGALITY: uJ� By: Tyler F. Wallach Assistant City Attorney Contract Compliant Manager: By signing, I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. Lacey IA Ruiz un 12202 13 CDT) Lacey M. Ruiz Sr. Contract Compliance Specialist M&Cs: 22-0672 (September 13, 2022); 23-0309 (April 25, 2023) Form 1295: 2022-919053 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX First Amendment to CSC 58421 2 of 3 Exhibit "A" REVENUES PID Assessmerds COFW Payment in lieu of Services COFW Assessment Total Budgeted Revenues Use of Fund Balance Total Funds Avai I able for Use EXPENSES Management Fee Utilities Landscaping Tree Maintenance Common Area Maintenance Holiday Lighting Security Enhancements Advertising Public Events Capital Improvements Annual Review City Administrative Fee Total Budgeted Expenses ContributJon to Fund Balance Total Expenses Net Change in Fund Balance Fund Balance, Beginning of Year (Estimated Ynu'-5) Estimated Fund Balance. End of Year Reserve Requirement Over (Under) Reserve City of Fart Worth Mid -Year Adjustment Five Year Service Plan FY23-FY27 Public Improvement District No. 7-Herftage FY22i23 FY23i24 FY24125 FY25t26 FY26t27 $ 1,860,543 $ 1,916.359 $ 1,973.350 $ 2,033,055 $ 2,D94,057 206,392 191,096 191,0% 191,096 191,096 17,313 16,716 16,716 16,716 16,716 $ 2,004,243 $ 21124,971 $ 2,191.562 $ 2,240,877 $ 2,301,869 251,140 - - - $ 2,335,366 $ 2.124.171 $ 2.161.662 $ 2,240,677 $ 2,301,869 $ 145.000 $ 148,000 $ 150,00t1 $ 152100D $ 154,001) 237.000 242.000 247.000 252,000 257,0131) 1,000,000 1,096,455 1,090,000 1,10D,000 1,125,DDD 348,076 185,000 170,000 225,000 240,000 69,945 70,000 70,000 70,000 7D,DD0 105.000 105.000 105.000 10 5,000 1105,0130 500 500 500 500 513D 156,000 158,000 160, 000 160,000 16 D-O D D 150,000 55,000 90,000 65,000 120-000 2,5t10 2,500 2,500 2 500 2.500 41,367 42,483 43,633 44,818 46,037 $ 2r335,366 $ 2,106,938 $ 2,1215,533 $ 2,196,1518 $ 2,280,037 - 17,233 53,029 44,059 21,832 $ 2r335,383 $ 2.124.171 $ 2.1311662 $ 2,240,877 $ 2,301,869 $ (251,1401 $ 17,233 $ 53N'2 $ 44,659 $ 21,832 951.336 700.196 717.429 77D,458 814,517 700,196 717,429 770,453 014,517 336,349 351,227 154,843 366,209 380,032 3813,082 $ 348,970 $ 362,566 $ 404,P48 $ 434435 $ 466,266 IFY2023 Assessment Rate = $.150 ResidentiaU $.110 Commercial City of Fort Worth, Texas Mayor and Council Communication DATE: 04/25/23 M&C FILE NUMBER: M&C 23-0309 LOG NAME: 17PID07 MIDYEARFY23 SUBJECT (CD 4 and CD 7 / Future CD 7 and CD 10) Adopt Ordinance Amending the Fiscal Year 2022-2023 Budget and Five -Year Service Plan for Public Improvement District 7 — Heritage and Adopt Appropriation Ordinances RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached ordinance amending the Fiscal Year 2022-2023 Budget and Five -Year Service Plan for Public Improvement District 7 — Heritage to reflect amendments associated with a mid -year review and direct the City Secretary to record the same in the real property records of Tarrant County, Texas no later than the seventh (7th) day after adoption by the City Council; 2. Adopt the attached appropriation ordinance adjusting appropriations in the General Fund by decreasing appropriations in the Non - Departmental Department in the amount of $15,893.00 and increasing appropriations in the Economic Development Department by the same amount, for the purpose of transfer to the Fort Worth Public Improvement District 7 - Heritage Fund for funding Payment In -Lieu of Services and City of Fort Worth Payment In -Lieu of Assessments; and 3. Adopt the attached appropriation ordinance adjusting estimated receipts and appropriations in the Fort Worth Public Improvement District 7 - Heritage Fund increasing appropriations in the amount of $15,893.00, transferred from Economic Development Departments General Fund, for purpose of funding Payment In -Lieu of Services and City of Fort Worth Payment In -Lieu of Assessments; and decreasing appropriations in the Fort Worth Public Improvement District 7 - Heritage Fund in the amount of $15,893.00, in Fiscal Year 2022-2023, in unreserved fund balance. DISCUSSION: The City of Fort Worth's Department of Economic Development administers the City's Public Improvement Districts (PIDs). The City's PID Policy outlines the need to proactively work with the City's PID management companies to oversee the services being provided within each of the PIDs. PID 7 — Heritage (Heritage PID) is managed by FirstService Residential Texas PID, LLC (FirstService). On September 13, 2022, City Council adopted Ordinance No. 25714-09-2022, approving the fiscal year (FY) 2022-2023 Budget, Five -Year Service Plan, Assessment Plan, and Tax Year 2022 Assessment Roll for the Heritage PID. After conducting a mid -year review of the Heritage PID's budget, City staff and FirstService have identified the need to increase Heritage PID's budget by $15,893.00 to account for 1) $15,296.00 of additional payment in -lieu of services, and 2) $597.00 of additional City payment in -lieu of assessments. The additional revenue increase will result in a reduction to the original use of the fund balance in the amount of $15,893.00. Two line items listed on the Five -Year Service Plan require a transfer of City funds: (1) the City Payment In -Lieu of Services and (2) the City of Fort Worth Assessment. The City's Payment In -Lieu of Services is a supplement to the Heritage PID budget and intended to provide for the standard level of improvements and services as comparable to what would be provided by the City for the taxpayers generally. The City of Fort Worth Assessment is an allocation to the PID budget for assessments the City would pay on City -owned properties in the Heritage PID, if the City was not a tax-exempt entity. Revenue Adjustments: Line Items to Previously Recommended Amended be Adjusted Approved FY23 Mid -Year FY23 Budget Budget Item Adjustment Item PID $1,860,543.00 $0.00 $1,860,543.00 Assessments COFW Payment in lieu $191,096.00 $15,296.00 $206,392.00 of Services COFW $16,716.00 $597.00 $17,313.00 Assessment i i i Use of Fund $267,033.00 Balance ($15,893.00) $251,140.00 Totals $2,335,388.00 $0.00 $2,335,388.00 All other previously approved line items not mentioned above remain the same. Upon approval of the above recommendations, the total budgeted expenses for FY 2022-2023 will be $2,335,388.00. This mid -year budget adjustment will increase the unaudited, unassigned fund balance by a total of $15,893.00. The revised Budget and Five -Year Service Plan will take effect upon approval by City Council. The City and FirstService will amend the existing management contract to reflect the mid -year adjustments (City Secretary Contract No. 58421). Funding is budgeted in the Other Contractual Services account of the Nondept Other Contractual Department's General Fund. The Heritage PID is located in COUNCIL DISTRICTS 4 & 7 / FUTURE COUNCIL DISTRICTS 7 & 10. A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the current operating budget, as appropriated, in the FWPID #7 - Heritage Fund. Prior to any expenditure being incurred, the Economic Development Department has the responsibility to validate the availability of funds. Submitted for Citv Manaaer's Office by Oriainatina Business Unit Head William Johnson 5806 Robert Sturns 2663 Additional Information Contact: Crystal Hinojosa 7808